Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Question

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Answer 1

Question

Chapter 10, Problem 47PA

1 a.

To determine

Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 b.

To determine

Determine accounts receivable turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 c.

To determine

Determine inventory turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 d.

To determine

Determine gross margin percentage for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

2.

To determine

Explain whether the industry average of retail stores for current ratio is sufficient to evaluate liquidity of Company K.

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Examine the importance of proper evaluation of investment projects.

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The financial manager at Rico Ltd had to choose between these two projects, alpha and beta, which have the following net cash inflows: Year Alpha Beta 1 5,000 36,000 2 18,500 36,500 3 36,200 37,000 4 123,000 175,000 Each project requires an initial investment of 118,000. No scrap values are forecast. Required:1. Calculate the payback period for each project. Answers must be expressed in years and months. Which project should be chosen and why? 2. Calculate the Net Present Value (NPV) for each project, using a discount rate of 12%. Which project would you choose and why? 3. Calculate the internal Rate of Return for each project. Which project should be chosen and Why?

Answer 2

Question

Chapter 10, Problem 47PA

1 a.

To determine

Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 b.

To determine

Determine accounts receivable turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 c.

To determine

Determine inventory turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 d.

To determine

Determine gross margin percentage for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

2.

To determine

Explain whether the industry average of retail stores for current ratio is sufficient to evaluate liquidity of Company K.

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Answer 3

Question

Chapter 10, Problem 47PA

1 a.

To determine

Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 b.

To determine

Determine accounts receivable turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 c.

To determine

Determine inventory turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 d.

To determine

Determine gross margin percentage for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

2.

To determine

Explain whether the industry average of retail stores for current ratio is sufficient to evaluate liquidity of Company K.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 10, Problem 47PA

1 a.

To determine

Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 b.

To determine

Determine accounts receivable turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 c.

To determine

Determine inventory turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 d.

To determine

Determine gross margin percentage for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

2.

To determine

Explain whether the industry average of retail stores for current ratio is sufficient to evaluate liquidity of Company K.

Expert Solution & Answer

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Answer 5

Chapter 10, Problem 47PA

1 a.

To determine

Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 b.

To determine

Determine accounts receivable turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 c.

To determine

Determine inventory turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

1 d.

To determine

Determine gross margin percentage for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

2.

To determine

Explain whether the industry average of retail stores for current ratio is sufficient to evaluate liquidity of Company K.

Answer 6

Chapter 10, Problem 47PA

1 a.

To determine

Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Answer 7

Chapter 10, Problem 47PA

1 a.

To determine

Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Answer 8

1 b.

To determine

Determine accounts receivable turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Answer 9

1 b.

To determine

Determine accounts receivable turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Answer 10

1 c.

To determine

Determine inventory turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Answer 11

1 c.

To determine

Determine inventory turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Answer 12

1 d.

To determine

Determine gross margin percentage for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Answer 13

1 d.

To determine

Determine gross margin percentage for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Answer 14

2.

To determine

Explain whether the industry average of retail stores for current ratio is sufficient to evaluate liquidity of Company K.

Answer 15

2.

To determine

Explain whether the industry average of retail stores for current ratio is sufficient to evaluate liquidity of Company K.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 10 - Prob. 1YT Ch. 10 - Prob. 2YT Ch. 10 - Prob. 3YT Ch. 10 - Prob. 4YT Ch. 10 - Prob. 5YT Ch. 10 - Define the items that the Financial Accounting...Ch. 10 - Prob. 2Q Ch. 10 - Prob. 3Q Ch. 10 - Prob. 4Q Ch. 10 - Prob. 5Q

Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Solution Summary: The author explains the current ratio, which measures the company's capacity to meet its short-term obligations using its current assets.

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Determine current ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Determine accounts receivable turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Determine inventory turnover ratio for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Determine gross margin percentage for the years June 30, 2011 and June 30, 2010. Also, indicate whether the result is favorable or unfavorable.

Explain whether the industry average of retail stores for current ratio is sufficient to evaluate liquidity of Company K.

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Chapter 10 Solutions